Tianjin Rural Cooperative Bank (TRCB) will be the largest shareholder of BRCB with up to 12% stake. TRCB was created in 2005 as the first provincial co-operative Apex bank in China, by uniting six rural cooperative banks and six rural credit cooperative unions. Total assets of these 12 entities amount to approximately RMB 80 billion ($10 billion equivalent).

Other shareholders will include local companies with a 10% cap on each shareholding and individual shareholders with a combined shareholding of up to 10%. TRCB would also like to invite a foreign strategic partner for a 10% equity stake in BRCB and is in discussion with potential investors.

The proposed IFC investment is for a 10% equity stake in BRCB.

32.35 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	32.35

* These investment figures are indicative

This project will have strong development impact and will signify IFC’s continued support of the reform and restructuring of China’s rural banking system. The project, adopting a rural commercial bank instead of a rural cooperative bank structure, serves as an alternative pilot model of reforming the existing RCCUs. The success of the Project will establish a replicable model for reforming the struggling rural credit cooperatives into commercially sustainable rural commercial banks.

This project will signify IFC’s continued support of the reform and restructuring of China’s rural banking system. The project will likely create a strong demonstration impact through improved corporate governance, risk management and stronger operating performance resulting from the introduction of international practices. The success of the project will establish a replicable model for reforming the struggling rural credit cooperatives into commercially sustainable rural commercial banks.

This is the first investment of IFC in a Chinese bank as a founding shareholder. Being a founding shareholder would allow IFC to play a more influential role in:

- shaping proper cooperate governance and organization structure;
- understanding skill gaps and formulating improvement roadmap;
- bringing in international strategic partner.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio, for types of transactions, size, tenor and industry sectors and determine the Applicable Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List; and/or
- The applicable National Social and Environmental Laws and regulations; and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.